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Revenue and profit increase at Mincon engineering company when costs are passed on to customers

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Irish engineering group Mincon said it will continue to pass on added costs to customers as it announced an 11.1% increase in revenue last year.

The company specializes in the design, manufacture, sale and maintenance of rock drilling tools and related products.

Total sales were just over 144.4 million euros last year, the group said in its 2021 results today.

Earnings before profits, taxes, depreciation and amortization (EBITDA) reached 25.2 million euros, up 1.9 percent in 2020, while profit after tax came in at 17.8 million euros, up 4.4 percent in 2020.

The Group is proposing a final dividend of 1.05c per common share, taking a total dividend for 2021 of 2.10c per common share, equal to the 2020 level.

Similar to similar terms, revenue grew 8pc, with expansion across all industries including mining, construction and geothermal. Mining business grew the most at 16pc.

Gross profit margin in 2021 is 33.8 points, down slightly from 2020 (35.2 points), according to Mincon, reflecting higher transportation and input costs, and increased sales of products. third-party products, offering lower profit margins than those manufactured by Mincon.

Mincon said the price hikes were “done cautiously to avoid cost increases” last year, with plans to increase further this quarter.

Davy stockbroker analyst Colin Sheridan predicts profits will grow 13pc in 2022 on the back of an “impressive” business resilience, despite transport, energy and raw material costs get a raise.

Revenue for 2021 beat Davy estimates thanks to what Mr. Sheridan said was a “particularly successful fourth quarter” with “significant” growth opportunities coming from the group’s new technologies.

The group completed two acquisitions in 2021, including American company Hammer Drilling Rigs – bringing in new intellectual property – and Attakroc, a distributor in eastern Canada. It acquired US-based Spartan Drill Tools shortly after the end of the school year.

“We are delighted to report growth in revenue and profit for 2021, after a year characterized by challenging and uncertain market conditions due to uncertainty,” said CEO Joe Purcell. Covid-19 pandemic.

“The start of the year has been particularly difficult due to the impact of the pandemic, but we have worked hard to mitigate the impact by adapting our operations to changing conditions. While strict Covid-19 health measures remained in place throughout the year in some areas, such as Western Australia, we delivered strong performance throughout the year. “

Mincon said book orders for 2022 “remained well as the market remained strong”.

https://www.independent.ie/business/irish/revenue-and-profit-up-at-engineering-firm-mincon-as-costs-passed-on-to-customers-41444242.html Revenue and profit increase at Mincon engineering company when costs are passed on to customers

Fry Electronics Team

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